Interim Results

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
 
23 February 2010
 
Goldplat plc ('Goldplat' or 'the Company')
 
                                Interim Results
 
Goldplat  plc,the AIM listed  gold producer, is  pleased to announce its interim
results for the six months ended 31 December 2009.
 
Overview
 
* Operating profits up 54% to £1,225,000 (2008: £792,000)
 
  * Profit  before  tax  of  £1.15m  (2008:  £1.20m)  due  to sharp movements in
    exchange rates
 
  * South   African  and  Ghanaian  gold  recovery  plants  production  for  six
    monthstotalled 8,309oz (2008: 12,084oz )
 
  * Kilimapesa  Gold mining  operation in  Kenya progressing  towards commercial
    gold production - mining lease application expected to be completed shortly
 
  * Acquired  option  over  the  prospective  246 sq  km  Nyieme Gold Project in
    Burkina Faso with the target to bring it into production
 
  * Continue  to  assess  various  acquisition  opportunities  across  Africa to
    further strengthen gold portfolio
 
Goldplat  CEO Demetri Manolis said,"These are  exciting times for Goldplat as we
continue  to bolster our position as a gold producer in Africa.  With the mining
licence  allowing us to make  commercial gold sales at  our Kilimapesa Gold mine
close  to  finalisation,  and  a  new  gold  mining  project in Burkina Faso, an
emerging gold district, we are realising our strategy of building a portfolio of
production  and exploration properties to become  a mid tier gold producer.  The
development  of  a  strong  portfolio  is  paramount  to our strategy and we are
actively  seeking other opportunities.  What differentiates us is our ability to
leverage  our two gold recovery  businesses in South Africa  and Ghana, where we
have  continued  to  increase  the  production  efficiencies  which  in turn has
improved  our cash flow from which to grow the Company.  With these developments
in mind, I believe 2010 will be a period of growth for the Company."
 
For  further  information  visitwww.goldplat.com  <http://www.goldplat.com/>  or
contact:
 
Demetri  Manolis, CEO Goldplat plc                  Tel: +27 (0) 11 423 1203
 
 James Joyce           WH Ireland Limited            Tel: +44 (0) 20 7220 1666
 
 David Porter          WH Ireland Limited            Tel: +44 (0) 20 7220 1666
 
 Felicity Edwards      St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177
 
 Isabel Crossley       St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177
 
Chairman's Statement
 
It  gives me great pleasure to report on Goldplat's progress as it moves towards
fulfilling  its  objective  of  becoming  a  mid-tier  gold producer focussed in
Africa.   During the period under review,  our gold recovery businesses in South
Africa  and  Ghana  performed  well,  providing  positive  cash flow to fund the
development of our gold mining project in Kenya towards production and acquire a
new gold mining project in Burkina Faso.
 
Gold Recovery Businesses
 
Our  two gold  recovery plants  in South  Africa and  Ghana are performing well,
generating  healthy  revenues.   For  the  six  months  to  31 December 2009 the
recovery operation in South Africa produced 6,369 oz (2008: 7,814 oz) whilst our
Ghanaian plant produced 1,940oz (2008: 4,270 oz).
 
As these figures demonstrate, the South African plant has performed in line with
management's  expectations, overcoming  the problems  facing South  African gold
producers  from the  strength of  the South  African Rand.   In part this can be
attributed  to the work  completed during 2009 to  increase the plant's capacity
and  economic  capabilities.   Not  only  did  we  commission  a larger mill and
increase  its flotation capacity, we also  expanded the range of materials being
processed  and the techniques  used.  To this  end,we designed and are currently
installing  an intensive cyanidation plant to leach the gravity concentrates and
load  gold  onto  carbon  for  elution,  due  to  come on line shortly.  This is
expected  to  result  in  significant  cost  savings  and  improved  cash  flow.
 Additionally,  Platinum  Group  Metal  concentrates  continue to be produced in
small  quantities,  but  these  represent  less  than 5% of total precious metal
production.
 
Income  at  the  Ghanaian  recovery  plant  fell  slightly  short  of management
expectations,  mainly  due  to  delays  in  the  delivery of concentrates to the
refiners.   However, production  has now  increased anddevelopment is proceeding
well.   A new incinerator has been commissioned and has produced ash with grades
exceeding  600 g/t  gold  from  relatively  low  grade  material.   An intensive
cyanidation plant is also being installed, which will enable us to sell our gold
in  bullion form and will,  as with the South  African recovery plant, result in
cost savings and improve cash flow.
 
Our  relationships with major producers as well  as with the authorities in both
South Africa and Ghana continue to strengthen - indeed, the Ghanaian Minister of
Mines  recently visited our plant in Tema and was impressed with the added value
operation.    These relationships are important to our businesses as we solidify
their  positions  as  key  cogs  in  the  whole  cycle  of  producing  minerals,
particularly in terms of fulfilling environmental obligations.
 
Mining
 
Kilimapesa  Gold,  our  gold  mining  project  in south western Kenya within the
historically  producing Migori Archaean Greenstone  Belt, is progressing towards
commercial  gold production.   Goldplat's management  have been  working closely
with  the  commissioner  of  Mines  and  Geology  to  finalise  the mining lease
application.   The National Environmental and  Management Agency have issued the
licence  for the  Environmental Impact  Assessment and  all agreements  with the
local  authorities  have  been  completed.   The  final component, the cadastral
survey,  is underway and is expected to be completed shortly.  The committee for
approving  the mines Mining lease, which is chaired by the Commissioner of Mines
and  Geology has given its approval pending the completion of this survey.  Once
this  is  officially  approved,  Kilimapesa  Gold  will  be  permitted  to  make
commercial sales of gold, including gold currently held in stock, and production
of gold will recommence.
 
In  line with the  Company's strategy of  expanding its geographic footprint, at
the  end of the period under review,  Goldplat announced that it had acquired an
option  over  the  prospective  246 sq  km  Nyieme Gold Project in Burkina Faso.
 Previous  exploration  generated  exciting  results  and  identified high-grade
quartz  vein structures over a  4 km trend so we  now plan to commence a 2,500m
diamond  drilling programme and also carry out a surface geochemical and mapping
programme  to define the  southerly extent of  the veins.  From  this we hope to
establish  a JORC-compliant resource, which will  form the basis of a production
development programme if economically viable.
 
Additional Opportunities
 
We  continue  to  assess  various  acquisition  opportunities  across  Africa to
strengthen  our  portfolio,  specifically  looking  at  mining assets that would
utilise the Company's knowledge and experience in the gold producing sector.
 
Financial Results
 
The  financial  results  show  a  further  strong trading period.  The Operating
Profit  increased by  more than  50% from the  same period  last year  to £1.22m
(2008:  £792,000) and is the highest six  month operating profit achieved by the
Group.   This is despite a charge in  respect of share options of £118,000, with
no  comparable charge  in the  half year  to 31 December 2008.  In addition, the
costs of seeking new projects and in particular investigating and evaluating the
Nyieme gold project, have been charged before arriving at the Operating Profit.
 
Sharp  movements in exchange rates, in particular the strengthening of the South
African Rand, resulted in Finance Income and Costs being a net charge of £71,000
in  the current period compared with a  net credit of £409,000 in the comparable
period  last year.  These movements  are random and not  connected to the actual
trading performance, and, in the case of the 2008 credit, a large part of it was
clawed  back in the second half.  For that  reason the Profit before Tax for the
six months is £1.15m (2008: £1.20m).
 
Future Prospects
 
Looking forward, the future for both our recovery businesses looks bright.  With
good stock piles and a steady flow of materials for processing through contracts
with  a growing number of major mining companies as well as increased capacities
and  capabilities, we anticipate  that revenues, in  particular in Ghana, should
rise accordingly.
 
On  the mining front, we are excited about the prospects at Kilimapesa Gold that
will, we hope, see the start of commercial production in the near future as well
as our new mining venture in Burkina Faso, for which we plan a drilling campaign
in 2010 with the aim to establish a JORC compliant resource in due course.  With
various  other opportunities  under review,  the remainder  of the  year will no
doubt  be busy for us, so we  look forward to regularly updating shareholders on
our progress and thank them for their continued support.
 
Brian Moritz
Chairman
23 February 2010
 
Consolidated Income Statement
 
 for the six months ended 31 December 2009
 
Six months ended 31     Six monthsended      Yearended
                                December 2009   31 December 2008   30 June 2009
 
                                  (unaudited)        (unaudited)      (audited)
 
                                        ₤'000              ₤'000          ₤'000
 
Revenue  from  precious                5,436              5,216         11,149
 metals
 
 Cost of Sales                        (3,769)            (3,974)        (8,225)
 
---------------------- ------------------ --------------
 Grossprofit                            1,667              1,242          2,924
 
 Administrative expenses                (442)              (450)        (1,100)
 
---------------------- ------------------ --------------
 Operating profit before                1,225                792          1,824
 finance costs
 
 Profit   on   sale   of                                                    420
 interest in subsidiary
 
 Finance income                           113                412            204
 
 Finance expense                        (184)                (3)           (43)
                        ---------------------- ------------------ --------------
 Profit before tax                      1,154              1,201          2,405
 
 Income tax expense                     (391)              (298)          (527)
                        ---------------------- ------------------ --------------
 Profit for the period                    763                903          1,878
 
Earnings per share
 
 Basic                                  0.68p              0.72p          1.67p
 
 Diluted                                0.60p              0.69p          1.58p
 
Consolidated Balance Sheet
 
 at 31 December 2009
 
                           As at31 December 2009       As at 31           As at
                                                   December 2008   30 June 2009
 
                                     (unaudited)     (unaudited)      (audited)
 
                                           ₤'000           ₤'000          ₤'000
 
Assets
 
 Non-current assets
 
 Property,    plant    and                 3,196           2,318          2,570
 equipment
 
 Pre            production                 1,241             635            884
 expenditure
 
 Goodwill                                  5,763           4,358          4,778
 
 Due  on sale of shares in                   444             558            472
 subsidiary
                          ----------------------- --------------- --------------
                                          10,644           7,869          8,704
                          ----------------------- --------------- --------------
 
Current assets
 
 Inventories                               2,332           1,960          1,473
 
 Trade      and      other                 2,598           2,318          2,012
 receivables
 
 Cash and cash equivalents                 1,048           2,518          2,198
                          ----------------------- --------------- --------------
                                           5,978           6,796          5,683
                          ----------------------- --------------- --------------
 
                          ----------------------- --------------- --------------
 Totalassets                              16,622          14,665         14,387
 
Equity and liabilities
 
 Equity attributable to equity holders of the
 Company
 
 Share capital                             1,121           1,121          1,121
 
 Share premium                             6,772           6,772          6,772
 
 Retained earnings                         4,174           2,429          3,414
 
 Exchange reserves                           165            (31)          (185)
                          ----------------------- --------------- --------------
 Shareholders' equity                     12,232          10,291         11,122
 
 Minority interests                          470             448            420
                          ----------------------- --------------- --------------
 Totalequity                              12,702          10,739         11,542
 
Non-current liabilities
 
 Provisions                                  162             126            146
 
 Deferred tax liabilities                    364             302            289
 
 Loans and borrowings                                        483            647
                          ----------------------- --------------- --------------
                                             526             911          1,082
                          ----------------------- --------------- --------------
 Current liabilities
 
 Trade and other payables                  1,954           2,634          1,471
 
 Balance           payable                   942
 onKilimapesa acquisition
 
 Taxation                                    498             381            292
                          ----------------------- --------------- --------------
                                           3,394           3,015          1,763
                          ----------------------- --------------- --------------
 
                          ----------------------- --------------- --------------
 Totalequity           and                16,622          14,665         14,387
 liabilities
 
Statement of changes in equity
 
 for the period ended 31 December 2009
 
                                      Share   Share Retained Exchange  Minority
                                    capital premium   income reserves interests
 
                                      ₤'000   ₤'000    ₤'000    ₤'000     ₤'000
 
Balance at 30 June 2008              1,121   6,772    1,623    (482)
 
 Profit for the year                                   1,706                172
 
 Minority  interest  in  subsidiary                                       (103)
 dividend
 
 Investment by minorities                                                   351
 
 Treasury shares                                        (49)
 
 Share incentive scheme reserve                          134
 
 Exchange translation profit                                      297

                                   ---------------------------------------------
 Balance at 30 June 2009              1,121   6,772    3,414    (185)       420
 
 Profit for the period                                   641                122
 
 Minority  interest  in  subsidiary                                        (72)
 dividend
 
 Share incentive scheme reserve                          119
 
 Exchange translation profit                                      350

                                   ---------------------------------------------
 Balance at 31 December 2009          1,121   6,772    4,174      165       470

                                   ---------------------------------------------
 
                              Six months ended   Six months ended  Year Ended30
                                    31December         31December     June 2009
                                          2009               2008
 
                                   (unaudited)        (unaudited)     (audited)
 
                         Note            ₤'000              ₤'000         ₤'000
 
Cash     flows     from 7.1
 operating activities
 
 Cash   generated   from                   477                653         1,554
 operations
 
 Financing income                          113                412           204
 
 Financing costs                         (184)                (3)          (33)
 
 Income taxes paid                       (268)              (254)         (577)
                             ------------------ --------------------------------
 Net   cash  flows  from                   138                808         1,148
 operating activities
 
Cash     flows     from
 investing activities
 
 Proceeds  from  sale of                    10                                1
 property,   plant   and
 equipment
 
 Acquisition          of
 property,   plant   and
 equipment
 
 Additions   to   expand                 (509)              (229)         (666)
 operations
 
 Pre          production                 (310)              (402)         (651)
 expenditure
                             ------------------ --------------------------------
 Net  cash  outflow from                 (809)              (631)       (1,316)
 investing activities
 
Cash     flows     from
 financing activities
 
 Purchase   of  treasury                                                   (49)
 shares
 
 Proceeds   received  on                    69                506           540
 shares      sold     in
 subsidiary
 
 Proceeds     paid    on                 (730)
 acquisition  of  shares
 in Kilimapesa
 
 Loans raised                                                 182           346
 
 Finance lease payments                                      (30)          (30)
                             ------------------ --------------------------------
 Net cash from financing                 (661)                658           807
 activities
 
------------------ --------------------------------
 Net     (decrease)    /               (1,332)                835           639
 increase  in  cash  and
 cash equivalents
 
 Cash      and      cash                 2,198              1,486         1,486
 equivalents          at
 beginning of period
 
 Effect of exchange rate                   182                197            73
 fluctuations         on
 monetary assets
                             ------------------ --------------------------------
 Cash      and      cash                 1,048              2,518         2,198
 equivalents  at  end of
 period
 
NOTES TO THE FINANCIAL STATEMENTS
 
 for the period ended 31 December 2009
 
1. Accounting policies
 
a) Presentation of financial information
 
    Goldplat  plc is incorporated in the United Kingdom under the Companies Act
    1985.
 
   The  consolidated financial  statements are  presented in  pounds sterling,
    which   is   considered  by  the  Directors  to  be  the  most  appropriate
    presentation currency for the consolidated financial statements.
 
b) Basis of preparation of the financial statements
 
    The   financial   statements   have   been   prepared  in  accordance  with
    International  Financial  Reporting  Standards  as  adopted by the EU.  The
    financial  statements have been prepared on the historical cost basis.  The
    principal accounting policies adopted are set out below.
 
   The  preparation of the financial statements requires the Directors to make
    estimates  and assumptions  that affect  the reported  amounts of revenues,
    expenses,   assets  and  liabilities,  and  the  disclosure  of  contingent
    liabilities at the date of the financial statements.  If in the future such
    estimates and assumptions, which are based on the Directors' best judgement
    at   the  date  of  the  financial  statements,  deviate  from  the  actual
    circumstances,  the original estimates and  assumptions will be modified as
    appropriate in the year in which the circumstances change.
 
c) Newstandards and interpretation
 
    At  the date  of authorisation  of these  financial statements,  there were
    International  Reporting Standards  and Interpretations  that were in issue
    but  not  yet  effective,  which  have  not been applied in preparing these
    financial statements.
 
   The   Directors  anticipate  that  the  adoption  of  these  Standards  and
    Interpretations  in  future  years  will  have  no  impact on the financial
    statements  except for  additional disclosures  when the relevant Standards
    and Interpretations come into effect.
 
d) Basis of consolidation
 
    The  consolidated financial statements incorporate the financial statements
    of   the   Company   and   enterprises   controlled  by  the  Company  (its
    subsidiaries)as  at  the  reporting  date.   Control  is achieved where the
    Company  has the power to govern the  financial and operating policies of a
    subsidiary.
    All  intra-Group transactions, balances, income and expenses are eliminated
    on consolidation.
 
e) Goodwill
 
    The purchase method of accounting is used to account for the acquisition of
    subsidiaries.   Identifiable assets acquired and liabilities and contingent
    liabilities  assumed in a business  combination, irrespective of the extent
    of  minority interests, are measured initially  at their fair values at the
    acquisition  date.  The excess of the cost of the acquisition over the fair
    value  of  the  Group's  share  of  the identifiable net assets acquired is
    recorded as goodwill.  If the cost of the acquisition is less than the fair
    value  of  the  net  assets  of  the subsidiary acquired, the difference is
    accounted for directly in the income statement.  The cost of an acquisition
    is  measured  at  the  fair  value  of the assets given, equity instruments
    issued  and liabilities incurred  or assumed at  the date of exchange, plus
    costs directly attributable to the acquisition.
 
f) Property, plant and equipment
 
    Items  of property, plant and equipment  are stated at historical cost less
    accumulated  depreciation and  impairment losses.   The cost  of the mining
    assets  includes  the  costs  of  dismantling  and  removing  the items and
    restoring the site on which they are located.
 
   Where  parts of  an item  of property,  plant and  equipment have different
    useful  lives, they are accounted for  as separate items of property, plant
    and equipment.
 
   Subsequent costs
 
    The  Group recognises in the carrying amount  of an item of property, plant
    and  equipment the cost of replacing part of such an item when that cost is
    incurred  if it is probable that the future economic benefits embodied with
    the  item will flow to the  Group and the cost of  the item can be measured
    reliably. All  other costs  are recognised  in the  income statement  as an
    expense as incurred.
 
   Depreciation
 
    Depreciation  is charged to  the income statement  on a straight-line basis
    over  the estimated useful lives of each part of an item of property, plant
    and equipment. Owned land is not depreciated.
 
    Leasehold land               Lease period
    Buildings                    20 years
    Plant and equipment          10 years
    Motor vehicles               5 years
    Office equipment             6 years
    Spare parts                  10 years
 
   Assets held under finance leases are depreciated over their expected useful
    lives on the same basis as owned assets or, where shorter, over the term of
    the relevant lease.
 
   Surpluses/(deficits)  on the disposal of mining assets, plant and equipment
    are credited/(charged) to income.  The surplus or deficit is the difference
    between the net disposal proceeds and the carrying amount of the asset.
 
g) Leases
 
    Leases  under the  terms of  which the  Group assumes substantially all the
    risks  and  rewards  of  ownership  are  classified  as finance leases. The
    owner-occupied  property acquired by  way of finance  lease is stated at an
    amount  equal to the lower  of its fair value  and the present value of the
    minimum  lease  payments  at  inception  of  the  lease,  less  accumulated
    depreciation and impairment losses.
 
h) Inventories
 
    Inventories are valued at the lower of cost and net realisable value on the
    weighted  average  basis,  and  include  costs  incurred  in  acquiring the
    inventories  and bringing  them to  their existing  location and condition.
     Net realisable value is the estimated selling price in the ordinary course
    of business, less the estimated costs of completion and selling expenses.
 
   Work-in-progress comprises materials in the process of being converted from
    raw  materials to finished goods.  Work-in-progress  is valued at the lower
    of cost and net realisable value on the weighted average basis.
 
   Bullion  on hand, gold and platinum in process represent production on hand
    after  the smelting  process, gold  contained in  the elution process, gold
    loaded  carbon in the CIL  and CIPprocesses, gravity concentrates, platinum
    group  metals (PGM) concentrates and any  form of precious metal in process
    where  the quantum of the contained metal can be accurately determined.  It
    is   valued  at  the  average  production  cost  for  the  year,  including
    amortisation and depreciation.
 
   Stores  and materials  consist of  consumable stores  and are valued at the
    lower of average cost or net realisable value.
 
i) Provisions
 
    A provision is recognised in the balance sheet when the Group has a present
    legal  or constructive obligation  as a result  of a past  event, and it is
    probable  that an outflow  of economic benefits  will be required to settle
    the  obligation. If  the effect  is material,  provisions are determined by
    discounting  the expected future cash flows at a pre-tax rate that reflects
    current   market  assessments  of  the  time  value  of  money  and,  where
    appropriate, the risks specific to the liability.
 
 j) Income tax
 
    Income  tax  on  the  profit  or  loss  for  the year comprises current and
    deferred  tax.  Income tax is recognised  in the income statement except to
    the extent that it relates to items recognised directly in equity, in which
    case it is recognised in equity.
 
   Current tax is the expected tax payable on the taxable income for the year,
    using tax rates enacted or substantially enacted at the balance sheet date,
    and any adjustment to tax payable in respect of previous years.
 
   Deferred  tax  is  provided  using  the  balance  sheet  liability  method,
    providing  for temporary differences between  the carrying amount of assets
    and  liabilities for financial reporting purposes  and the amounts used for
    taxation  purposes.  The  following temporary  differences are not provided
    for:  goodwill not deductible for tax  purposes, the initial recognition of
    assets  or liabilities that  affect neither accounting  nor taxable profit,
    and  differences relating to investments in subsidiaries to the extent that
    they  will probably  not reverse  in the  foreseeable future. The amount of
    deferred  tax provided  is based  on the  expected manner of realisation or
    settlement of the carrying amount of assets and liabilities using tax rates
    enacted or substantively enacted at the balance sheet date.
 
2. Business and geographical segments
 
   For  management purposes, the Company's main  activity is that of a holding
    Company.
 
                                                            Percentage
    TradingSubsidiaries  Main         Country               Owned
                         activity
 
    Goldplat    Recovery Precious     South Africa          85 %
    (Pty) Ltd            metal
                         extraction
 
    Gold  Recovery Ghana Precious     Ghana                 100 %
    Limited              metal
                         extraction
 
    KilimaPesa      Gold Gold         Kenya                 100 %
    (Pty) Limited        producer
 
3. Share capital
 
                           31December 2009 31December 2009 30June        30June
                                                             2009          2009
 
                                     £'000    No of shares  £'000  No of shares
 
    Authorised
 
    Ordinary  shares  of            10,000   1,000,000,000 10,000 1,000,000,000
    1p

                        --------------------------------------------------------
 
   Issued   and   fully
    paid
 
    Ordinary  shares  of             1,121     112,120,000  1,121   112,120,000
    1p

                        --------------------------------------------------------
    Issued  share capital includes  400,000 ordinary shares of  1p each held in
    treasury.
 
4. Share based payments
 
                 Number      of Exercise    Number of options     Exercise
                 options        Price                             Price
 
                 December 2009  December    June 2009             June 2009
                                2009
 
    Share options
 
    Outstanding      17,200,000         10p             1,200,000           10p
    atbeginning
    of period
 
                        750,000        7.5p               750,000          7.5p

                ----------------------------------------------------------------
    Total            17,950,000                         1,950,000
 
    Granted                                            16,000,000           10p
    during year

                ----------------------------------------------------------------
    Outstanding      17,950,000                        17,950,000
    atend     of
    period
 
   The  fair value  of these  share options  has been independently calculated
    using the Black Scholes Model using the following assumptions:
 
    Risk  free  interest 2.93%
    rate
 
    Expected volatility  55%
 
    Expected    dividend 0%
    yield
 
    Life of the option   3.5
                         years
 
    The  weighted average remaining contractual life of the options outstanding
    at the balance sheet date is 3 years 316 days.
 
5.  Earnings per share
 
    The  calculation of earnings per ordinary share
     is based on the following:
 
                                                                         £'000
 
    Earnings  for the purpose of basic earnings and                        763
     diluted earnings per share
                                                    ----------------------------
 
                                                              Number of shares
 
    Weighted  average  number  of  common shares in                111,720,000
     issue during the year
 
    Effect of dilutive options                                      16,173,750
                                                    ----------------------------
 
    Weighted  average  number  of  common shares in                127,893,750
     issue  during  the  year  for  the  purpose  of
     diluted earnings per share
 
                                       As at             As at              As
 
                             31 December 2009  31 December 2008    30 June 2009
 
                                  (unaudited)       (unaudited)       (audited)
 
                                        ₤'000             ₤'000           ₤'000
 
6.  Goodwill
 
     As       previously                4,778             5,018           5,018
     stated
 
     Reduction  on  sale                                  (660)           (240)
     of     shares    in
     subsidiary
 
     Goodwill         on                  985
     acquisition      of
     Kilimapesa shares
                          --------------------                 -----------------
                                        5,763             4,358           4,778
                          --------------------                 -----------------
                             Six months ended  Six months ended      Year ended
                                           31                31    30 June 2009
                                December 2009     December 2008
 
 7.  Notes  to  the cash
     flow statement
 
7.1 Cash  generated  by
     operations
 
     Operating    income                1,225               792           1,824
     before interest and
     taxation
 
Adjustments for:
 
     Depreciation     of                   96                71             164
     property, plant and
     equipment
 
     (Loss)  / profit on                  (1)                 4              16
     disposal         of
     property, plant and
     equipment
 
     Share     incentive                  119                               134
     scheme  charged  to
     income statement
                          --------------------                 -----------------
     Operating    income                1,439               867           2,138
     before      working
     capital changes
 
     (Increase)       in                (859)             (822)           (335)
     inventories
 
     (Increase) in trade                (586)             (881)           (575)
     and           other
     receivables
 
     Increase  in  trade                  483             1,489             326
     and other payables
                          --------------------                 -----------------
                                          477               653           1,554
                          --------------------                 -----------------
 
[HUG#1387172]